EA11.

LO 5.3Mazomanie Farm completed 20,000 units during the quarter and has 2,500 units still in process. The units are 100% complete with regard to materials and 55% complete with regard to conversion costs. What are the equivalent units for materials and conversion?

An equivalent unit of production is an expression of the amount of work done by a manufacturer on units of output that are partially completed at the end of an accounting period.

Material equivalent units:

Eq units = completed units + (still in process * % completion)

= 20,000 + 2500 * 100% = 22,500 units

Conversion equivalent units:

Eq units = completed + (still in process * % completion)

= 20,000 + (2500 * 55%)

= 21,375 units